Investing 250k inheritance post Brexit -advice needed

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Diplodicus said: 

Since you mention Brexit in your concerns, I would suggest investing abroad, for some proportion of your investment, for two reasons:

1) The historical direction of £ over the last century is down, down, down; and no clear reason why Brexit should reverse that. 

2) Your fortune is tightly wound up with the value of £ : pension, property, salary, savings; so it makes sense to diversify.

Investing abroad is easy, the names everyone knows are the most heavily traded stocks in the world. 

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That's a bit vague, though I agree with other comments you've made on the forum. I think TC's comment is the most practical. £50k premium bonds, £200k in a broad global equity index fund like VLS 100, or you could upweight the UK a little more for some extra dividend yield is a solid plan given the OP already has plenty of other savings and income.

contr_arian

Personal attacks aside there's loads of good ideas been suggested.

longleggings

Thanks again everyone for your comments - my inheritance is now in and it leaves me with 200k to invest in one or more multi asset funds such as Vanguard, IWebb L&G etc. My latest question is about spreading my risk over more than one platform.
i think my favoured platform would be Vanguard. Would it be wise to say put 100k in Vanguard, 50K in IWebb and 50K in another. Or could i put it all in Vanguard (are they at risk of going down) which would be simpler. Are there any extra costs involved in using 3 platforms over one.?
Ta LL

Thrugelmir

Diplodicus said:

1) The historical direction of £ over the last century is down, down, down; and no clear reason why Brexit should reverse that. 

£ - $ exchange rate in 1985 was $1.09 

Diplodicus

GBPUSD 1.09 in 1985 - Thrulgelmir. 

Yes, but looking at the great sweep of the last hundred years is better than playing “let’s start counting from here.” 

Sometimes a political event can have a profound effect on fx - like Switzerland uncoupling from the euro. But Brexit is not producing that effect or, to be more accurate, the ‘16 ref caused the biggest ever one-day fall of a major currency since fixed-rates, and still has not recovered.

longleggings

Can someone help me out with this calculation ? (I've probably got this wrong) regarding the short term benefits of
say Vanguard LS 60% v NS&I instant access (1.16%).  I've calculated, based on 2months mid-covid figures from June to end of July that LS 60 is coming in as + 1.5% (Nav) - 0.22% fee = + 1.28%  NS&1 is not much different at 1.16% and is fully protected.
Does this suggest that due to current volatility, NS&I is a better bet in the short term (say 6 mths)
Thanks in advance for any views

LL

csgohan4

Investments go down as well as up, bare in mind out side of PB, the interest is taxed depending on your tax bracket and how much over your interest allowance you go. 

No harm in having your emergency fund in NS&I so it is easy to access

longleggings

Thank csgohan
Thanks for the reminder about the tax bracket. Do you agree with my Vanguard v NS&I calculations ? on the face of it, not much difference.
What concerns me re.equity volatility is that there are a few potential market challenges in the short term (6mths)
Such as new lockdowns (2nd wave), a close run USA election in Nov. with legal challenges, Brexit etc
All of which could have a negative impact on equities, or am i being too pessimistic ?

coyrls

longleggings said:

Does this suggest that due to current volatility, NS&I is a better bet in the short term (say 6 mths)

If this is new cash to which you need access in 6 months, NS&I is the only bet vs LS 60%.  If you're saying take money out of LS 60% and put it into NS&I for 6 months and then put it back into LS 60%, then that really is a bet and the return of LS 60% over the previous two months has no relevance to the bet.

thegentleway

AnotherJoe said:

To answer for TC, with £50k (max amount) PB's will pay 1.2% on average tax free. 

You actually get less than 1.2%, about 1% with average luck.
"PB are more for fun than returns": https://www.moneysavingexpert.com/savings/premium-bonds/

longleggings said:

Thank csgohan
Thanks for the reminder about the tax bracket. Do you agree with my Vanguard v NS&I calculations ? on the face of it, not much difference.
What concerns me re.equity volatility is that there are a few potential market challenges in the short term (6mths)
Such as new lockdowns (2nd wave), a close run USA election in Nov. with legal challenges, Brexit etc
All of which could have a negative impact on equities, or am i being too pessimistic ?

Maybe pessimistic, maybe realistic. Nobody can predict the future! There are always potential market challenges. Markets are forward looking and the obvious stuff is priced in. Definitely don't invest in markets for 6 months but in the long run equities have made much better returns than any other asset class. Whereas cash loses value due to inflation.